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On May 8 the USD/CHF pair has slightly dropped. At the moment the pair is trying to resume the ascending movement. This fact will be indicated by MACD that is expected to change its direction to uprising one. The current signal for Buy-deals is confirmed and strong as the Chinkou Span is fixed above the price chart and the price is located above the Ichimoku Cloud. That is why target for upward movement is seen at the first resistance level 0.9229. In case this level is passed though, the new target for bullish trade – the second resistance level 0.9278 will be available. The upward movement remains the same as long as the price is located above the Kijun-Sen (0.9175). While bullish trade it is preferable to lace the Stop Loss below this line. In case this line goes lower than this line, the signal for Buy-deals will weaken confirming the current signal for Buy-deals and indicating the bearish mood on the USD/CHF market. Bollinger Bands points at the continuation of the upward movement, lines are expanding and directed upwards. Therefore, it is recommended to consider long positions. MACD is directed to the upside and indicate the current downward movement of the price. Therefore, it is recommended to refrain from opening and supporting long positions before the reversal of the indicator.
On the USD/CHF market it is recommended to consider long positions with first target seen at the 0.9229 level. When this level has been passed through, the target for Buy-deals will be seen at the 0.9278 level. Stop Loss is to be placed lower than 0.9175 and if this line goes downwards Stop Loss is to be placed after it. It is recommended to open long positions after the reversal of the MACD to upwards. With 50-60 pips of profit Stop Loss can be placed into the zero area. Take profits are to be set a bit lower than the target level (10 pips approximately).
Apart from the technical picture it is necessary to consider the fundamental data and the time of its release.
Explanations to the picture:
Tenkan-Sen – red line
Kijun-Sen – blue line
Senkou Span A – light brown dotted line
Senkou Span B – light blue dotted line
Chinkou Span – green line
Senkou Span B – violet dotted line
3 yellow lines
Red line and the histogram with white bars in the indicators window.
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Analista: Stanislav Polyanskiy
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